Friedman Industries — First Quarter 2026 Earnings Summary

Financial Performance

• Net sales reached $240.0 million, a 78% increase year-over-year compared to $134.8 million in the prior year quarter.
• Net earnings were $12.8 million ($1.79 diluted EPS), up from $5.0 million ($0.71 diluted EPS) in the prior year quarter.
• EBITDA increased to $19.3 million from $8.2 million in the prior year quarter.
• Operating cash flow for the quarter was $7.3 million.
• Sales volume reached approximately 206,000 tons, a 28% year-over-year increase.
• Average selling price for inventory tons sold was $1,262 per ton, compared to $926 per ton in the prior year quarter.
• Total assets were $373.4 million as of June 30, 2026, compared to $336.8 million as of March 31, 2026.
• Total stockholders' equity was $164.2 million as of June 30, 2026, compared to $151.5 million as of March 31, 2026.
• Earnings from operations were $21.0 million, compared to $7.0 million in the prior year quarter.

Guidance and Future Outlook

• The Company expects second quarter sales volumes to be comparable to first quarter levels.
• Sequential improvement in sales margins is anticipated for the second quarter driven by increases in average selling prices.

Business Segments and Product Lines

• Flat-roll segment: Sales totaled $221.8 million, up from $124.1 million in the prior year quarter. Sales volume was 175,000 tons from inventory and 17,500 tons from toll processing. Operating earnings were $24.7 million, up from $8.8 million in the prior year quarter.
• Tubular segment: Sales totaled $18.2 million, up from $10.7 million in the prior year quarter. Sales volume was 13,500 tons. Average selling price was $1,341 per ton. Operating earnings were $2.1 million, up from $1.3 million in the prior year quarter.
• Approximately 33,000 tons of the total volume increase was attributable to organic growth at existing facilities, while the remainder resulted from the acquisition of Century Metals in August 2025.
• The Century Metals acquisition has integrated into the platform, contributing to growth and profitability while expanding geographic reach.

Market and Competitive Landscape

• Record quarterly sales volume was achieved, up 9% sequentially and 28% year-over-year.
• Growth was driven by stronger customer demand, successful commercial initiatives to improve capacity utilization, and the Century Metals acquisition.
• Most year-over-year sales volume growth originated from organic growth at facilities operated prior to the Century acquisition.

Risks and Challenges

• Forward-looking statements involve risks including changes in demand for and prices of products, changes in government policy regarding steel, and changes in demand for steel products generally.
• Risks include the Company's success in executing internal operating plans, changes in and availability of raw materials, and ability to satisfy take-or-pay obligations under supply agreements.
• Potential risks include unplanned production facility shutdowns due to equipment failures, increased competition from alternative materials, and risks concerning innovation, new technologies, and increasing customer requirements.

Management Commentary and Tone

• CEO Michael J. Taylor expressed pleasure with record sales volume and significantly improved financial performance, citing the strength of the commercial strategy and disciplined execution.
• Management highlighted that the results demonstrate the ability to translate higher throughput and improved margins into meaningful earnings growth.
• Taylor noted the success of investments to expand capacity utilization, win new business, and deepen customer relationships.
• Management stated the Company is well-positioned to continue growing and delivering value due to a strong balance sheet, broad processing capabilities, and a disciplined commercial approach.

Other Key Points

• The Company acquired Century Metals in August 2025, which contributed to the year-over-year sales volume increase.
• The Company operates two segments: flat-roll products (processing carbon steel, stainless steel, and aluminum) and tubular products (manufacturing ERW pipe).
• The press release includes a reconciliation of net earnings to EBITDA, defining the non-GAAP measure as net earnings plus interest, income tax, depreciation, and amortization.
• The Company is headquartered in Longview, Texas, and trades on NASDAQ/GS under the ticker FRD.